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TMI Blog2013 (5) TMI 440X X X X Extracts X X X X X X X X Extracts X X X X ..... ly, we shall take up the appeal ITA NO. 7441/M/2011 which is filed by the Revenue on 4.11.2011 is against the order of CIT (A)-6, Mumbai dated 12.8.2011 for the AY 2004-05. In this appeal, Revenue raised the only effective ground which reads as under: "On the facts and circumstances of the case and in law, the Ld CIT (A) erred in cancelling the levy of penalty u/s 271(1)(c) of the Act, without appreciating that the assessee did not make the correct claim which amounted to furnishing in accurate particulars of income. It is not a case of debatable claim" 3. Briefly stated relevant facts of the case are that the assessee is engaged in the business of manufacturing of grey fabrics. Assessee filed its return declaring loss of Rs. 2,03,97,888/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oncealment of income/particulars. When assessee is having carried forward losses, then there is no necessity to create willful default by debiting bad debts as expenditure. Moreover, in the present case tax evasion is nil. Even if the entire amount is being added to the income, then also the tax effect on additions/disallowances will be NIL because of current year loss and carried forward loss. Considering the above submissions of the assessee, CIT (A) cancelled the penalty of Rs. 4,71,442/- levied concealment of income vide order dated 12.8.2011 and the relevant para from the order of the CIT (A) reads as under:- "Out of the above, the disallowance of claim of bad debts, written off was confirmed and the club expenses disallowance was red ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the return does not attract the provisions of section 271(1)(c) of the Act for allegations of concealment or deemed concealment of income. Regarding bad debts written off by the assessee, considering the fact the facts are disclosed in the books and the return, the wrong claim therefore is a bona fide one. Basing on this logic alone, we are of the considered opinion that the CIT (A) has rightly cancelled the penalty and hence, the order of the CIT (A) does not call for any interference. Accordingly, grounds raised by the Revenue are dismissed. 8. In the result, appeal of the Revenue is dismissed. I.T.A. NO.7481/M/2011 (AY: 2008-09) 9. This appeal filed by the Revenue on 8.11.2011 against the order of CIT (A)-6, Mumbai dated 18.8.2011 f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ras 3 to 3.2 are extracted here under for the sake of completeness of the order:- "Ground No.3 is regarding the addition of from customer Rs. 10,44,021/-. The AO has discussed this issue at para 6 of the assessment order and the said para is fully quoted as under: "It is seen from schedule-K form part of accounts that the assessee has shown creditors for advances from customers to the tune of Rs. 10,44,021/-. The assessee was asked to furnish the details of the customer with either the confirmation or any documentary proof for the liability. In response thereto, the assessee only furnished the copy of the ledger account. In the circumstances, the liability of Rs. 10,44,021/- is treated as non existing and added to the assessee's total inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the advance of Laxmi Niwas Narsinha Das has become NIL in the year 2010-11. In the circumstances, there is no justification for addition and the addition f Rs. 10,44,021/- is deleted." 11.1. Aggrieved with the above decision of the CIT (A), Revenue carried the matter in appeal before the Tribunal raising the only ground mentioned above. 12. During the proceedings before us, Ld DR dutifully relied on the order of AO. 13. On the other hand, Shri Vimal Punmiya, Ld Counsel for the assessee relied on the CIT (A) and reiterated the submissions made before him. 14. We have heard both the parties and perused the orders of the AO as well as the CIT (A). The only issue in dispute is regarding the deletion of addition of advance from customers. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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